Hotels Fail For Many Reasons

Independent & Franchise

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Hotels do not fail on their own. It does not matter if you own a franchised property or an independent property. It does not matter if you own a small roadside motel or a large ocean front resort......It's All About Capturing Your Fair Share of The Market to Stay in Business   

 

Below Are a Few Reasons Hotels Fail:

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•       Underestimating the difficulty of establishing a new hotel business

•       Owners who do not read the fine print relating to ALL the fees they have to pay each month

•       Paying high fees for services & products that are not needed and the ROI is not worth it.

•       Being forced by your franchisor to use preferred vendor products and services that cost less elsewhere

•       Ownership has No practical hotel experience

•       The hotel doesn't have “that thing" that makes it special - No uniqueness

•       Limited knowledge of sales & marketing

•       Unprepared for off-season

•       They underestimate their competition

•       Community disconnect - No manager presence

•       Lack of accountability and urgency

•       Using outdated technology - with little or no support - and your fees are always going up

•       Absentee owners, with passive onsite managers & staff

•       Unmotivated employees, asleep at the wheel

•       Ownership negating all the profits and not reinvesting in renovations when needed

•       Pushed out of  the market of best to second-best by a new or renovated hotel

•       Menus that are not comparable to others nearby

•       Employee theft - of cash or inventory

•       Dye the carpet and raise the rates mentality

•       Consistently comping rooms rather than addressing service issues

•       Owner and franchise have different goals

•       Ownership stuck in a 10--20 year franchise agreement - with a 5 year exit plan

•       Dated rooms and common areas

•       Safety and health issues ignored    

•       Free Continental Breakfast - fit for a wedding reception

•       PIPs based on sheep mentality of "monkey see - monkey must copy" "Well the hotel down the street does it" 

•      Thinking Artificial Intelligence (AI) is going to be the "Gold Standard" for all things hotel related

•      Your Team Managers dictating why they are the best and other department managers are to blame